By Myla Iglesias
September 14, 2018

The NAIA Consortium, composed of seven conglomerates, yesterday said it has formally received an original proponent status (OPS) for its proposal to rehabilitate, expand and operate the congested Ninoy Aquino International Airport (NAIA) for P102 billion.

“We are very grateful to the Department of Transportation (DOTr) and the Manila International Airport Authority (MIAA) for granting the consortium the OPS as it triggers a series of steps we need to work on to make this project happen,” said Jimbo Reverente, NAIA Consortium spokesperson.

“The NAIA Consortium looks forward to working closely with the DOTr and MIAA to progress this initiative. We are committed to see this project through and to follow the proper legal processes,” Reverente added.

The consortium is composed of Aboitiz InfraCapital Inc., AC Infrastructure Holdings Corp., Alliance Global Group Inc., Asia’s Emerging Dragon Corp., Filinvest Development Corp., JG Summit Holdings Inc. and Metro Pacific Investments Corp.

Last February, it submitted a P350-billion unsolicited proposal for NAIA that involves building a third runway. The concession period is for 35 years. However, the proposal was revised in response to the DOTr’s request to shorten the concession period.

The consortium cut the concession period to 15 years but removed the proposed third runway. Under the revised proposal, it will transform NAIA into a regional airport hub and expand its capacity to meet the anticipated growth in passenger traffic.

“We remain focused on our commitment to deliver to our country a significantly improved NAIA and are prepared to start work immediately after the airport is turned over to the consortium. Our fellow Filipinos can expect a better airport experience as early as the 3rd year from the time we commence rehabilitation work,” Reverente said.

The P102-billion proposal involves expanding and interconnecting the existing terminals of NAIA, upgrading airside facilities, developing commercial facilities to increase airline and airport efficiencies, enhancing passenger comfort and experience, and elevating the status of NAIA as the country’s premier international gateway.

These improvements will be implemented by the consortium with minimal disruption to ongoing airport operations.

The NAIA Consortium is expected to increase the airport’s current passenger capacity of 35 million to 48 million in two years of operation, and to 65 million in four years.

Following the grant of OPS, the NAIA Consortium’s proposal will be up for review and approval of the National Economic and Development Authority (NEDA) Board and undergo a Swiss challenge in accordance with the requirements of Republic Act 7718, or the Build-Operate-Transfer Law.

Meanwhile, the DOTr said it is finalizing the terms of reference and completing all the documentary requirements that will be submitted to the NEDA-Investment Coordination Committee.

In a bid to enhance mobility and connectivity and to help address congestion at NAIA, Arthur Tugade, DOTr secretary, said he remains firm on his stand to develop multiple airports in the country.

Tugade said the direction of the DOTr is to construct new airports as well as improve, rehabilitate or expand existing gateways such as NAIA.

The NAIA project supports the government’s ‘Build, Build, Build’ program, which plans to develop NAIA into a world-class facility and a regional air transport hub by upgrading its airside, landside and air navigation support – building on the gains already achieved by the DOTr in terms of improving the traffic of aircraft movements on its runways.

The grant of OPS to NAIA Consortium officially rejects the proposal of the Megawide-GMR consortium, which also offered to upgrade NAIA for P150 billion for 18 years.

However, Megawide-GMR still has a chance to submit its offer once the government conducts the Swiss challenge which is targeted before the year ends.